Presentation top top theme: "Chapter 1 test College Accounting. Question: An organization in which straightforward resources (inputs), such as materials and labor, are assembled and processed."— Presentation transcript:




You are watching: A(n) _________________ changes basic inputs into products that are sold to customers.

1 chapter 1 test College accounting

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2 Question: An organization in which an easy resources (inputs), such together materials and labor, room assembled and also processed to provide goods or services (outputs) to customers is a(n)__? Answer: company

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3 Question: A organization organized under state or commonwealth statutes as a different legal entity is a(n)____? Answer: coporation, group

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4 Question: A human being or entity that has actually an attention in the financial performance the a service is called a(n) _________? Answer: company Stakeholder

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5 Question: An information system that provides reports come stakeholders around the economic activities and condition of a business is _______? Answer: accounting

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6 Question: Moral principles that guide the command of individuals are referred to as _______? Answer: principles

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7 Question: A devoted field of bookkeeping that uses estimated data to help management in running day-to-day operations and in planning future work is referred to as _______ accounting. Answer: Managerial

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8 Question: A concept of accounting that calls for that financial data be tape-recorded in dollars is the___ __ ____ concept. Answer: Unit of measure up

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9 Question: The sources owned by a service are called_______. Answer: legacy

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10 Question: The civil liberties of the owner are dubbed _______ _______. Answer: Owner’s same

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11 Question: heritage = legal responsibility + owner equity is the ________ ________. Answer: bookkeeping Equation

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12 Question: Carson offered for sale at $75,000 floor that had been purchased because that $45,000. If Zimmer payment Carson $70,000 for the floor – the amount Zimmer would record in the audit records is ______. Answer: $70,000

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13 Question: The liability produced by a purchase on account is referred to as a(n) ________ _________. Answer: Account Payable

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14 Question: If liabilities space $85,000 and owner’s equity is $45,000, the quantity of the heritage is _______. Answer: $130,000

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15 Question: If assets are $375,000 and owner’s same is $295,000, the lot of the legal responsibility is ________. Answer: $80,000

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16 Question: The quantity a company earns by selling items or solutions to its client is called _______. Answer: Revenue

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17 Question: If operations because that an accounting duration resulted in cash sales of $60,000, sales ~ above account of $150,000, and also expenses paid in cash that $195,000, the net earnings or (net loss) because that the duration is ________. Answer: $15,000 Net earnings

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18 Question: A review of the transforms in the owner’s equity that have emerged during a specific duration of time, such as a month or a year, is the _____ Answer: explain of Owner’s equity

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19 Question: The owner’s same at the beginning of the period was $19,000; in ~ the end of the period, assets to be $98,000 and liabilities to be $41,000. The owner made no additional investments or withdrawals throughout the period. The net income or (net loss) because that the duration is ___________. Answer: $38,000 Net income

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20 Question: The kind of balance sheet the resembles the an easy format of the bookkeeping equation, through assets on the left side and also the liabilities and owner’s equity sections ~ above the appropriate side, is called the ________ form. Answer: Account

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21 Question: If total assets boosted by $85,000 and also liabilities reduced by $9,000 during the period, the amount and direction (increase or decrease) the the period’s change in owner’s equity to be _______. Answer: $94,000 increase

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22 Question: A form of company that changes basic inputs into commodities that are sold to individual customers is a(n) __________ business. Answer: production

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23 Question: A type of service that purchases assets from other businesses and also sells them come a customer is a(n) _________ business Answer: Merchandising

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24 Question: A business owned through one separation, personal, instance is dubbed a(n) Answer: sole Proprietorship

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25 Question: people whom the owners have authorized to operate the business are called Answer: managers

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26 Question: Authoritative body that has actually the main responsibility for developing accountancy principles is the Answer: FASB

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27 Question: FASB means what?? Answer: Financial accounting Standards board

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28 Question: The legal rights of creditor that represent debts the the business are called? Answer: legal responsibility

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29 Question: Items together as gives that will be offered in the organization in the future are referred to as Answer: Prepaid expenses

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30 Question: A claim against the customer is referred to as an Answer: account Receivable

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31 Question: If owner’s equity is $46,000 and also liabilities space $34,000, the amount of legacy is Answer: $80,000

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32 Question: A summary of the revenue and expenses because that a specific duration of time (month, year) is referred to as a Answer: income Statement

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33 Question: If operations for an accounting period resulted in cash sales of $90,000, sales on account that $40,000, and expenses paid in cash the $135,000, the net income or loss because that the duration is ? Answer: net loss that $5,000

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34 Question: A perform of assets, liabilities and owner’s equity as of a certain date is referred to as Answer: Balance paper

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35 Question: The owner’s same at the start of the duration was $46,000; in ~ the finish of the period, assets were $99,000 and liabilities to be $22,000. If the owner made second investment of $10,000, and withdrew $8,000 throughout the period, the net earnings or network loss would be Answer: $29,000 Net earnings

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36 Question: The accounting concept the requires financial data be tape-recorded in dollars is A. Cost principle B. Objectivity concept C. Service entity principle D. Unit that measure concept

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37 True or False Question:Accounting is often characterized as the “language of business.”

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38 True or False Question: Accountants who render accounting services top top a dues basis and staff accountants work by castle are stated to be involved in private accountancy

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39 True or False Question: Managerial accountancy uses estimated data rather of financial audit data to run day-to-day work

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40 True or False Question: The ide that expenses incurred in generating revenue need to be matched against the revenue in determining net income or network loss is dubbed the price concept.

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41 True or False Question:The financing tasks section the the statement of cash flows consists of cash transactions that get in into the determination of network income.

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42 True or False Question:The fan of a organization are referred to as its account receivable.

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43 True or False Question:A cooperation is own by not much less then 4 individuals.

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44 True or False Question:A organization transaction is the occurrence of an event or that a condition that have to be recorded.

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45 True or False Question:A an overview of the transforms in the owner’s equity of a organization entity the have developed during a specific period of time, such together a month or a year, is called a explain of cash flows.

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46 True or False Question:A claim versus a customer because that sales made on credit is an account payable.

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47 True or False Question: one account payable is a claim versus a customer occurring from a sale that allows the client to pay later.

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48 True or False Question: If complete assets boosted by $75,000 throughout a specific duration and liabilities reduced by $10,000 throughout the same period, the period’s change in full owner’s equity to be an $85,000 increase.

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49 Earning Revenue increases assets, boosts liabilities rises one asset, decreases another asset to reduce assets, increases liabilities rises assets, rises owner’s equity

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50 Debts owed by a business are described as legacy Liabilities share revenue

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51 Earning Revenue increases assets, boosts liabilities boosts one asset, decreases an additional asset to reduce assets, boosts liabilities increases assets, rises owner’s same

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52 exactly how does the acquisition of gives on account impact the accounting equation? heritage increase; liabilities decrease heritage increase; owner’s equity boosts Assets increase; liabilities rise Liabilities increase; owner’s equity decreases

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